The module discusses why and how banks must integrate climate risk management into their strategic planning and credit systems to achieve sustainability goals. This encompasses an understanding of both physical and transaction risks, which include the financial impacts of policy changes, technological advancements, market shifts, and reputation concerns. To assess and mitigate the risks Banks should use tools such as ESG scoring and stress testing. Banks should also align with frameworks such as the Task Force on Climate-Related Financial Disclosures. Lastly, banks should commit to net zero and carbon neutrality. The goal here is to ensure financial sustainability while supporting global climate goals.